Key Takeaways
- A settlement agreement has dramatically reduced a proposed rate increase for Duke Energy customers in Upstate South Carolina.
- The average residential bill is now set to increase by just 84 cents per month initially, far below the originally requested $10.38 hike.
- The deal was reached between Duke Energy and a coalition of consumer, environmental, and small business advocacy groups.
- The smaller increase is made possible by federal tax credits and shareholder contributions that will help offset costs for consumers.
GREENVILLE, S.C. — Hundreds of thousands of electric customers across Upstate South Carolina can expect a much smaller increase to their monthly bills next year after a settlement was reached on Duke Energy’s proposed rate hike. If approved by state regulators, the deal represents a significant reduction from the company’s initial request.
The agreement, filed with the S.C. Public Service Commission, impacts 680,000 customers served by Duke Energy Carolinas.
A Smaller-Than-Expected Increase
Under the new settlement, a residential customer using 1,000 kilowatt-hours (kWh) per month will see their bill increase by only 84 cents, from $136.82 to $137.66, starting March 1. In two years, that same bill would increase by an additional $4.21 per month.
This is a stark contrast to Duke Energy’s original proposal from July, which would have raised the average monthly bill by $10.38. The settlement slashes Duke’s overall requested annual revenue increase by more than half, from $150.5 million down to $74.2 million.
Behind the Settlement Agreement
The breakthrough came after negotiations between Duke Energy and a wide range of intervenors, including environmental organizations, consumer advocates, and state agencies.
Two key factors will help offset the bill increases for customers:
- Federal Tax Credits: A two-year flowback of $100 million in federal tax credits awarded to Duke for producing renewable energy.
- Shareholder Funds: A $750,000 annual contribution from shareholder funds for two years.
“If approved, this agreement allows us to keep pace with the needs of a growing state… so we can continue to support reliability and long-term economic growth for the communities we serve,” said Duke Energy spokesperson Ryan Mosier. The utility has stated the rate increase is necessary to fund critical improvements to grid reliability and resiliency.
A Win for Consumers and Clean Energy
Advocacy groups hailed the settlement as a victory for residents, especially at a time of rising living costs.
“This settlement includes exciting provisions essential to helping South Carolinians in a time when costs of living are high,” said Kate Mixson, a senior attorney with the Southern Environmental Law Center. “As a result, customers will be able to better control their bills and reduce costs to the grid with energy efficiency and clean energy programs.”
The agreement also mandates that Duke participate in future proceedings to explore ways to protect residents from costs associated with large-load users like data centers and improve programs for energy efficiency, weatherization, and solar power. The S.C. Public Service Commission must give final approval before the new rates take effect.
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